Pig producers' call for export insurance rejected

The Department of Agriculture and Food has rejected a request by Irish pig producers and processors to consider introducing export…

The Department of Agriculture and Food has rejected a request by Irish pig producers and processors to consider introducing export credit insurance for pigmeat.

Export credit insurance lowers the risks taken by exporters when they sell into non-EU countries, where payment can sometimes be slow and debts are difficult to recover.

Following a meeting of the Minister of State at the Department of Agriculture and Food, Mr Ned O'Keeffe, with the Irish Farmers' Association and the processors, Mr Liam Ryan, chairman of the IFA's national pigs and pigmeat committee, said he was extremely disappointed at the lack of progress on the IFA proposals put forward last Friday.

He said the Department was very negative on the proposal to introduce export credit insurance for pigmeat exports to third countries and in particular the Russian market.

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"Our main competitors, the Danes, have had this facility in place for many years, and in order for us to compete with them on an equal footing it is essential to have this form of insurance in place," he said.

"We are not prepared to accept the reluctance to entertain export credit insurance for pigmeat and this issue must be pursued by the Ministers Walsh and O'Keeffe, within the Government," he said.

"We want to see the backlog of pigs for slaughter being reduced this week."

Department sources yesterday challenged an IFA claim that there is a backlog of 25,000 caused by the destruction of Northern Ireland's main processing plant in June and a fall-off in demand in EU and Asian markets.

The sources said they expected the situation to improve with the introduction last week of higher levels of export refunds on pigmeat cuts for sale to non-EU countries.